Best SIP Mutual Funds

Advantages of Investing in the Best SIP Mutual Funds

• Disciplined Investment

  SIP enables you to automate your investment and hence brings discipline to your investment journey. It allows you to invest a specific amount at regular intervals in mutual funds, unlike paying a lump sum investment at once. 

• Rupee Cost Averaging

  It is a concept where you buy more units when the fund’s NAV is low and fewer units when it is high. Over long investment periods, it averages your purchasing costs. This helps reduce market timing risk in your investments.

• Flexibility

  You can start a SIP with any amount as per your preference. In addition, you can pause a SIP and resume it according to your requirements. 

• Compounding

  Compounding happens when you earn returns on top of your returns. This is possible when staying invested over long periods. Investing in the Best SIP funds increases the changes of compounding your returns.

• Fund Selection

  The best SIP mutual funds are selected based on their historical SIP returns. These are the funds where the investor has higher chances of making a great long term SIP investment return and beating the benchmark.

• Higher Returns

  The best SIP mutual funds have a proven track record of making higher returns than the category average and the market benchmark. Note that past performance may not be indicative of future returns.

Points to Consider Before Investing in the Best SIP Mutual Funds

Before investing in the mutual fund investment best plan, you must consider these points to grow your capital:

• Investment Goals

  You must understand your investment goals before investing in mutual funds, as it will help you choose the best mutual fund according to your goals. You must determine the amount you want to save, your investment horizon and expected returns before you start investing in mutual funds.

• Risk Appetite

  Assessing risk tolerance is crucial before investing in mutual funds, as different schemes have different risk levels and returns. Hence, choosing the correct mutual funds that align with your risk tolerance is critical.

• Investment Horizon

  You must consider the investment duration when choosing SIP, as it is devised for a long-term investment horizon. The longer your investment horizon, the higher will be the returns, as the funds get more time to grow. 

• Expense Ratio

  When choosing a mutual fund, you must consider the expense ratio, as the fund manager charges it for maintaining your funds. The lower the expense ratio, the higher will be your take-home returns. 

• Fund’s Performance

  Before choosing the best SIP investment plan for mutual funds, you must assess their past performances. It will help you get better insights into the funds’ historical performance and compare their returns to analyse whether they can withstand market fluctuations.

• Fund Selection

  There are several types of mutual funds available, like debt funds, equity funds and hybrid funds. Each of these offers different returns and has a different investment approach. Hence, you must choose a mutual fund that aligns with your goals and risk appetite.

How to Start Investing in the Best SIP Mutual Funds with INDmoney?

In the case of a good mutual fund for SIP, the investors have limited control over the pricing and timing of investments. Investors must invest at the pre-determined investment schedule that may not align with market conditions or personal financial situations.

• Step 1

  Complete KYC Process

  

• Step 2

  Invest in Multi-Asset Mutual Funds

  

• Step 3

  Choose SIP or one time investment